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Why are rollover rates tripled on Wednesdays?

Eden 2019-04-15 15:23:39

Why are rollover rates tripled on Wednesdays?

When placing a trade in the spot forex market, the actual value date is two days forward, for instance, a deal done on Thursday is for value Monday, a deal done on Friday is for value Tuesday, and so on. On Wednesday, the rollover amount is tripled to compensate for the following weekend (during which time rollover is not charged because trading is stopped at weekends).